Sony, Microsoft, Nintendo United Against Trump
Although Sony, Microsoft and Nintendo are competitors in the game market, the three game consoles have put down their respective positions this time and united against the US Trump administration to impose tariffs on China.
Business Insider reported that the three companies jointly sent a letter to US Trade Representative Office (USTR) Chief Justice Joseph Barloon on June 17, which stated that these tariffs would cause disproportionate damage to US consumers and businesses. It is also required to exclude the game machine from the tariff range.
The reason why these three competitors will unite against tariffs is simple, because most of the game consoles produced by the Big Three are from China. According to data from Trade Partnership Worldwide, more than 95% of the game consoles sold in 2018 are in China. produce.
Under the tariffs that the Trump administration plans to implement for $200 billion worth of Chinese products, the tariffs faced by game console manufacturers have risen from the current 10% to 25%.
According to the contents of the letter, the three operators said that because the gaming machine can obtain very little profit, the game machine manufacturers will pass the increased cost of the tariff to the consumers, which will have a huge impact on the sales of the game console. “A 25% increase in prices will likely make game consoles an unaffordable item for American families. Consumers will pay $840 million more than they originally would.”
In addition, the three companies also argue that these new tariffs will likely alleviate the innovation of the US technology industry. “This move will not only affect the video game industry, but it will also have a ripple effect, because the video game industry has long played a leading role in technological innovation in the United States, regardless of the hardware, software or gaming industries.”
In addition, the letter pointed out that the 25% tariff on the game machine made in China does not help the US government to achieve the goal of protecting intellectual property rights, because the Chinese market has not been able to replicate those locally produced game machines, so the so-called Chinese games. The machine is currently “actually does not exist.”